The short answer is—it depends.
With a cash car purchase, you pay the entire amount upfront, meaning you own the car outright and don’t have to make any monthly payments. Financing means taking out a loan to cover the cost of the vehicle, which requires monthly payments until you pay off the loan.
Let’s explore the pros and cons of financing a car purchase vs. paying cash.
Now that you understand some of the pros—let’s look at some reasons financing a car may not be ideal:
When you’re looking to purchase a car and have the means to go the cash route, there are a few things to think about– cash on hand or not.
If you have the cash to purchase a car, you may be tempted to do so. Here are a few reasons why you may reconsider:
There are pros and cons to financing and paying cash for a car purchase. It’s crucial to weigh the options before you make a decision that will impact your finances for years to come.
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